Problem
1. What is, the three-way classification system in the SCF more informative than the two-way source/use classification?
2. How does the source/use classification reflect the structure of double entry accounting?
3. What is the purpose of reporting noncash items in the SCF?
3. Why is the SCF called a derivative statement?
4. The chapter suggests that liquidity and flexibility data do not compose a central feature of accrual accounting. Explain why this is so.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.